| PART | Part | Description | ||
|---|---|---|---|---|
| 1 | INTRODUCTION | Product introduction, what the product helps you with | ||
| 2 | INSTALLATION & SETUP | System necessities, step-by-step set up information | ||
| Information to Putting in Free Indicators and EAs Included with the Mirage Buying and selling System Buy | ||||
| 3 | INTERFACE DISPLAY | Clarification of the elements displayed on the chart | ||
| Consumer Information: Buying and selling Traces & Sign Monitoring System | The system mechanically attracts Entry, Cease Loss, and Take Revenue traces (TP 1–4) on the chart, tracks value motion for hits, data Win/Loss outcomes, and shows real-time efficiency statistics. | |||
| Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Alerts | If you connect an indicator to a chart, the system renders the next visible elements for every detected sign | |||
| Consumer Information: MTF SCAN & Dashboard Consumer Information | MTF SCAN mechanically scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid instantly in your chart. | |||
| Consumer Information : Chart Theme Consumer Information | Chart Theme is a characteristic that modifications your complete chart colour scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask traces — with a single click on. | |||
| 4 | CORE CONCEPTS | Elementary ideas that the system is constructed upon | ||
| Consumer Information: Market Construction Performance within the Buying and selling System | Identifies development route (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (development continuation) and CHoCH (potential development reversal). | |||
| Consumer Information : Sign Sorts, States, and Lifecycle | A sign is the system’s notification when it detects a qualifying candlestick sample on the chart. Every sign tells you the anticipated value route and offers urged entry, cease loss, and take revenue ranges. | |||
| 5 | SIGNAL FILTERS | Filters that refine and validate buying and selling indicators | ||
| Consumer Information: Commerce Course (Course Filter) within the Buying and selling System | Defines the allowed buying and selling route (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than looking for entry indicators, based mostly on present market development. | |||
| Consumer Information: Sign Zone Filter within the Buying and selling System | Eliminates indicators not close to necessary value zones, retaining solely these linked to market buildings (swing excessive/low, BOS, CHoCH) to cut back noise. | |||
| Consumer Information: StoplossHunt Filter Consumer Information — Filtering “SL Sweep” Alerts | Identifies higher-probability indicators by checking whether or not value “swept stoploss” earlier than forming a sample. | |||
| Consumer Information : Excessive Zone Filter |
Excessive Zone Filter is a sign filtering characteristic that helps keep away from getting into trades when value is on the high or backside of a Donchian value channel. | |||
| Consumer Information: Reverse Sign Filter | The Reverse Sign Filter is an automated characteristic that stops new indicators from showing when you have already got an energetic commerce working in the wrong way.The precept could be very easy: Do not buy once you’re promoting. Do not promote once you’re shopping for. | |||
| Consumer Information : High quality Filter Consumer Information | High quality Filter is a characteristic that helps you obtain solely the most effective indicators — value patterns shaped clearly, with balanced proportions and excessive reliability — and reject weak indicators, uninteresting patterns, and people beneath commonplace. | |||
| 6 | TRADE MANAGEMENT | |||
| Consumer Information : Danger/Reward & SL Methodology Consumer Information | Danger/Reward (R:R) is the ratio between the amount of cash you settle for shedding (Danger) and the amount of cash you anticipate to realize (Reward) in a single commerce. | |||
| Consumer Information: Trailing Cease Loss (TSL) Consumer Information | Common Cease Loss (SL) stays fastened in a single place. You set SL at 1990.00, and it stays there eternally — even when value has risen to 2030.00.Trailing Cease Loss (TSL) is completely different. It mechanically strikes in your favor when value advances. As value strikes up, TSL strikes up with it. When value stalls or reverses, TSL holds the most effective place it reached. | |||
| 7 | CONFIGURATION PARAMETERS GUIDE | Detailed information to every configuration parameter | ||
| SIGNAL SCANNING CONFIGURATION GUIDE – MIRAGE TRADING SYSTEM EA | Information to mastering sign scanning settings throughout the Inputs tab, optimizing commerce discovery on a single chart or throughout your complete market. | |||
| 8 | ALERTS & NOTIFICATIONS | |||
| Consumer Information: Alerts & Notifications Consumer Information | Configure push notifications, and on-screen popups when new indicators are detected. | |||
| 9 | SYSTEM RISKS & LIMITATIONS | Notes on system dangers and limitations |
1. INTRODUCTION
Engulfing Buying and selling System
2-Bar Energy Reversal — Full Physique Engulfment Detection
Writer: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/customers/khiemni/vendor
What’s Engulfing Buying and selling System?
Engulfing Buying and selling System helps you see Bullish and Bearish Engulfing patterns in your MetaTrader 5 charts — mechanically. The indicator scans each candle, filters out weak setups, and reveals you solely the most effective buying and selling alternatives with clear entry factors, cease losses, and revenue targets already calculated. It really works on any market and any timeframe, supplying you with extra time to focus in your buying and selling selections as a substitute of looking for patterns.
What Are Engulfing Patterns?
Engulfing patterns are highly effective 2-bar reversal patterns that seem when market momentum shifts dramatically from one route to the opposite. The defining attribute is that the second candle’s physique utterly wraps round (engulfs) the primary candle’s physique — a visible show of 1 aspect overwhelming the opposite.
Bullish Engulfing (Bullish Reversal)
A Bullish Engulfing seems on the backside of a downtrend. The primary candle (setup) is a bearish candle displaying sellers are nonetheless pushing value down. Then the second candle (engulfing) opens beneath the setup candle’s shut and closes above the setup candle’s open — its physique utterly wraps the primary candle’s physique. This dramatic shift reveals patrons have taken over with power, signaling a possible development reversal upward.
Bearish Engulfing (Bearish Reversal)
A Bearish Engulfing seems on the high of an uptrend. The primary candle (setup) is a bullish candle displaying patrons are nonetheless pushing value up. Then the second candle (engulfing) opens above the setup candle’s shut and closes beneath the setup candle’s open — utterly wrapping the primary candle’s physique. This reveals sellers have overwhelmed patrons in a single session, signaling a possible development reversal downward.
If you see these patterns forming close to necessary assist or resistance ranges, they turn out to be much more dependable indicators for potential development reversals.
How the Indicator Finds Patterns
The indicator scans your charts in real-time and checks every potential sample in opposition to a number of high quality necessities:
- Checks that each candles have significant our bodies (not doji or spinning tops) to verify decisive market participation
- Verifies the engulfing candle’s physique utterly wraps the setup candle’s physique — opening past one excessive and shutting past the opposite
- Measures the engulfing candle’s power relative to current volatility (ATR) to filter out insignificant strikes
- Optionally checks for development context utilizing a easy shifting common to verify the sample seems after a directional transfer
Solely patterns that go all these checks seem in your chart, so you do not waste time on weak or invalid setups.
High quality Rating — How Good Is the Sample?
Each sample will get a top quality rating from 0% to 100%, like a grade on a take a look at. This helps you give attention to the most effective buying and selling alternatives.
What the Rating Means
The indicator evaluates 4 key elements to grade every Engulfing sample. How a lot bigger is the engulfing physique in comparison with the setup physique? How sturdy is the engulfing candle relative to current volatility? The place did the engulfing candle shut inside its vary? And does the sample seem in a significant development context? Patterns with bigger engulfing ratios, sturdy momentum, and clear development context obtain greater scores.
| Grade | Rating Vary | High quality Stage |
|---|---|---|
| A | 80-100% | Wonderful — Finest indicators |
| B | 60-79% | Good — Dependable setups |
| C | 40-59% | Common — Wants affirmation |
| D | 20-39% | Under Common — Dangerous |
| F | 0-19% | Poor — Keep away from |
High quality Threshold Setting
By default, the indicator solely reveals patterns scoring 30% or greater. You may alter this within the settings:
- Increase to 50-60%: See solely the most effective indicators (fewer however greater high quality)
- Decrease to 15-20%: See extra indicators (extra frequent however combined high quality)
- Tip: Begin with the default 30% and alter based mostly in your backtest outcomes
What You See on the Chart
When the indicator detects an Engulfing sample, it attracts the whole lot you must know instantly on the chart:
Sign Markers
- Arrow icons: A inexperienced upward arrow seems beneath bullish engulfing patterns; a pink downward arrow seems above bearish engulfing patterns
- High quality labels: The standard rating proportion (e.g., “78%”) is displayed subsequent to every sign arrow
Buying and selling Traces
- Entry line: A blue horizontal line on the engulfing candle’s excessive (bullish) or low (bearish), or on the shut value in aggressive mode
- Cease Loss line: A pink horizontal line beneath the sample low (bullish) or above the sample excessive (bearish), with pip distance label
- Take Revenue traces: As much as 4 inexperienced traces (TP1-TP4) at configurable R:R ratios, every with pip distance and R:R labels
Visible Zones
- Sample spotlight: A shaded rectangle covers the sample space, inexperienced for bullish and pink for bearish setups
- Monitoring dots: Small dots hint the value path after a sign is detected, altering colour because the sign progresses via its lifecycle
Sign Lifecycle
Alerts progress via completely different states, proven by altering colours and monitoring dots:
- Pending: Sample simply detected, ready for entry affirmation
- Triggered: Entry value reached, commerce is energetic
- Goal Hit: Worth reached take revenue stage (sign turns inexperienced)
- Cease Hit: Worth hit cease loss (sign turns pink)
- Cancelled: Sign invalidated earlier than entry (sign disappears or grays out)
You may watch your indicators evolve in real-time with out opening any menus or panels.
Settings You Can Modify
Listed below are the principle settings that management how the indicator finds and shows Engulfing patterns:
| Setting | What It Does | Default | When to Change It |
|---|---|---|---|
| ATR Interval for volatility | Controls what number of bars are used to measure market volatility | 14 | Hardly ever wants altering; decrease for faster-moving markets |
| Max Bars to Scan (historical past depth) | How far again in historical past to search for patterns | 3000 | Improve to see extra historic indicators, lower for quicker loading |
| Min Bars Between Patterns | Minimal hole between consecutive indicators | 3 | Improve if indicators cluster too shut collectively |
| Min Physique/Vary (each bars, filter doji 0.20=20%) | Minimal physique measurement relative to candle vary for each candles | 0.20 | Decrease to simply accept extra doji-like candles, increase to require stronger our bodies |
| Min Engulfing Physique/ATR (significance, 0.30=commonplace) | How giant the engulfing physique should be relative to ATR | 0.30 | Increase for stronger indicators solely, decrease if indicators are too uncommon |
| Min Setup Physique/ATR (0.15=relaxed) | Minimal setup candle physique measurement relative to ATR | 0.15 | Increase to require bigger setup candles, decrease for extra indicators |
| Require Development Bars Earlier than Sample (0=disable) | Variety of same-direction bars required earlier than the sample | 0 | Set to 2-3 to require clear development context earlier than patterns |
| Entry Mode | Aggressive (enter at shut) or Conservative (enter at breakout) | Conservative | Use Aggressive for earlier entries, Conservative for affirmation |
| Entry Buffer (xATR, conservative breakout) | Buffer added to entry value in conservative mode | 0.05 | Improve for wider entry buffer, lower for tighter entries |
| SL Buffer (xATR above/beneath sample) | Additional area added to cease loss past sample excessive | 0.10 | Improve in risky markets, lower for tighter stops |
| Development SMA Interval (0=disable) | SMA interval for development route filter | 0 | Set to 20-50 to solely present patterns aligned with SMA development |
| Min High quality (0.0-1.0, 0.30=relaxed) | Minimal high quality rating threshold to show a sign | 0.30 | Increase to see fewer however greater high quality indicators |
Settings Ideas
- Begin with all default settings and let the indicator run for a couple of days to see the way it performs
- The Entry Mode setting is exclusive to this indicator — attempt Conservative first for safer entries with breakout affirmation
- Should you get too many indicators, increase the standard threshold to 50% or allow the development filter (set Development SMA Interval to twenty)
- All the time backtest any setting modifications earlier than utilizing them on a reside account
Finest Timeframes and Markets
Beneficial Timeframes
| Timeframe | Sign High quality | Sign Frequency | Finest For |
|---|---|---|---|
| M15 | Good | Excessive | Scalping, fast reversals |
| H1 | Very Good | Average | Day buying and selling, intraday swings |
| H4 | Wonderful | Low-Average | Swing buying and selling, place entries |
| D1 | Wonderful | Low | Swing/place buying and selling, main reversals |
Finest Markets
- XAUUSD (Gold): Wonderful sample readability on H1 and H4 timeframes — engulfing patterns are particularly efficient on gold attributable to its sturdy momentum strikes
- EURUSD, GBPUSD, USDJPY: Work nicely on all timeframes above M15 — main pairs present clear engulfing formations
- US30, NAS100: Finest outcomes on H4 and Every day timeframes the place institutional participation creates clear engulfing strikes
- Cryptocurrency (BTCUSD, ETHUSD): Use H4 or Every day timeframe for clearer indicators — decrease timeframes are usually noisy
The indicator works on any image and timeframe, however these combos have a tendency to provide probably the most dependable indicators.
Getting Began — Fast Setup
Observe these steps to start out utilizing Engulfing Buying and selling System:
- Open MetaTrader 5 and cargo your most popular chart (we suggest beginning with XAUUSD on H1)
- Within the Navigator panel (Ctrl+N), develop “Indicators” and discover “Engulfing Buying and selling System”
- Drag the indicator onto your chart
- A settings window seems — click on OK to make use of the default settings to your first session
- Look ahead to sign arrows and buying and selling traces to look because the indicator scans your chart historical past
- After observing a couple of indicators, alter the High quality Threshold or Entry Mode based mostly in your buying and selling type
- Allow push notifications in Settings > Alerts in order for you cell alerts for brand new indicators
That is it! The indicator is now scanning your charts mechanically and can warn you when high-quality Engulfing patterns seem.
All Options at a Look
Sample-Particular Options
- ✓ Full physique engulfment detection with automated bullish/bearish classification
- ✓ 4-factor weighted high quality scoring: engulf ratio, physique/ATR, shut place, development context
- ✓ Twin entry mode system: Conservative (breakout) or Aggressive (shut) with configurable buffer
- ✓ Sample-adaptive cease loss placement at sample excessive with ATR buffer
- ✓ Optionally available development filter by way of SMA to align indicators with prevailing development route
The next professional-grade options can be found throughout all our indicators:
| 3 | INTERFACE DISPLAY | Clarification of the elements displayed on the chart | ||
| Consumer Information: Buying and selling Traces & Sign Monitoring System | The system mechanically attracts Entry, Cease Loss, and Take Revenue traces (TP 1–4) on the chart, tracks value motion for hits, data Win/Loss outcomes, and shows real-time efficiency statistics. | |||
| Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Alerts | If you connect an indicator to a chart, the system renders the next visible elements for every detected sign | |||
| Consumer Information: MTF SCAN & Dashboard Consumer Information | MTF SCAN mechanically scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid instantly in your chart. | |||
| Consumer Information : Chart Theme Consumer Information | Chart Theme is a characteristic that modifications your complete chart colour scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask traces — with a single click on. | |||
| 4 | CORE CONCEPTS | Elementary ideas that the system is constructed upon | ||
| Consumer Information: Market Construction Performance within the Buying and selling System | Identifies development route (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (development continuation) and CHoCH (potential development reversal). | |||
| Consumer Information : Sign Sorts, States, and Lifecycle | A sign is the system’s notification when it detects a qualifying candlestick sample on the chart. Every sign tells you the anticipated value route and offers urged entry, cease loss, and take revenue ranges. | |||
| 5 | SIGNAL FILTERS | Filters that refine and validate buying and selling indicators | ||
| Consumer Information: Commerce Course (Course Filter) within the Buying and selling System | Defines the allowed buying and selling route (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than looking for entry indicators, based mostly on present market development. | |||
| Consumer Information: Sign Zone Filter within the Buying and selling System | Eliminates indicators not close to necessary value zones, retaining solely these linked to market buildings (swing excessive/low, BOS, CHoCH) to cut back noise. | |||
| Consumer Information: StoplossHunt Filter Consumer Information — Filtering “SL Sweep” Alerts | Identifies higher-probability indicators by checking whether or not value “swept stoploss” earlier than forming a sample. | |||
| Consumer Information : Excessive Zone Filter |
Excessive Zone Filter is a sign filtering characteristic that helps keep away from getting into trades when value is on the high or backside of a Donchian value channel. | |||
| Consumer Information: Reverse Sign Filter | The Reverse Sign Filter is an automated characteristic that stops new indicators from showing when you have already got an energetic commerce working in the wrong way.The precept could be very easy: Do not buy once you’re promoting. Do not promote once you’re shopping for. | |||
| Consumer Information : High quality Filter Consumer Information | High quality Filter is a characteristic that helps you obtain solely the most effective indicators — value patterns shaped clearly, with balanced proportions and excessive reliability — and reject weak indicators, uninteresting patterns, and people beneath commonplace. | |||
| 6 | TRADE MANAGEMENT | |||
| Consumer Information : Danger/Reward & SL Methodology Consumer Information | Danger/Reward (R:R) is the ratio between the amount of cash you settle for shedding (Danger) and the amount of cash you anticipate to realize (Reward) in a single commerce. | |||
| Consumer Information: Trailing Cease Loss (TSL) Consumer Information | Common Cease Loss (SL) stays fastened in a single place. You set SL at 1990.00, and it stays there eternally — even when value has risen to 2030.00.Trailing Cease Loss (TSL) is completely different. It mechanically strikes in your favor when value advances. As value strikes up, TSL strikes up with it. When value stalls or reverses, TSL holds the most effective place it reached. | |||
| 7 | CONFIGURATION PARAMETERS GUIDE | Detailed information to every configuration parameter | ||
| SIGNAL SCANNING CONFIGURATION GUIDE – MIRAGE TRADING SYSTEM EA | Information to mastering sign scanning settings throughout the Inputs tab, optimizing commerce discovery on a single chart or throughout your complete market. | |||
| 8 | ALERTS & NOTIFICATIONS | |||
| Consumer Information: Alerts & Notifications Consumer Information | Configure push notifications, and on-screen popups when new indicators are detected. |
Frequent Questions
Q: Why does the cease loss appear vast on some indicators?
The indicator locations the cease loss past the sample’s excessive (low for bullish, excessive for bearish) plus an ATR buffer. Huge-range engulfing patterns naturally produce wider stops. You may swap the SL Methodology to Donchian Channel for structure-based stops, or scale back the SL Buffer setting for tighter placement — however bear in mind this will likely improve false stop-outs.
Q: What is the distinction between Conservative and Aggressive entry mode?
Conservative mode locations a pending order on the engulfing candle’s excessive (bullish) or low (bearish) plus a small ATR buffer — you solely enter if value confirms the route. Aggressive mode enters on the engulfing candle’s shut value, supplying you with earlier positioning however with out breakout affirmation. Begin with Conservative in case you want safer entries.
Q: How do I scale back the variety of indicators?
Three choices: (1) Increase the Min High quality threshold from 0.30 to 0.50 or greater. (2) Set Require Development Bars to 2-3 so patterns should seem after a transparent development. (3) Allow the Development SMA filter (set interval to twenty) to solely present indicators aligned with the shifting common route.
Q: How is Engulfing completely different from the Darkish Cloud / Piercing sample?
Engulfing requires the second candle’s physique to utterly wrap the primary candle’s physique — opening past and shutting past each extremes. Darkish Cloud and Piercing solely require the second candle to penetrate previous the midpoint of the primary candle. Engulfing is mostly thought of a stronger reversal sign due to the entire physique engulfment.
Q: Can I take advantage of this indicator with an Professional Advisor?
Sure. The indicator exposes 10 sign buffers (Course, Entry, SL, TP1-4, High quality, Sign ID) that any EA can learn by way of iCustom(). See the EA Sign Buffers person information for connection particulars and a ready-to-use EA template.
What’s New — Model 1.00
That is the v1.00 launch of Engulfing Buying and selling System. Key options embody:
- Automated Bullish and Bearish Engulfing sample detection on all timeframes
- 4-factor weighted high quality scoring (engulf ratio, physique/ATR, shut place, development context)
- Twin entry mode: Conservative (breakout affirmation) and Aggressive (candle shut)
- 7-layer sign filter chain (high quality, excessive zone, route, SL hunt, sign zone, spacing, reverse)
- Multi-timeframe scanner monitoring as much as 150 symbols throughout 8 timeframes
- Donchian Channel trailing cease with breakeven lock and dynamic adjustment
- 4-channel alert system (popup, sound, push, e-mail) with anti-spam safety
- Market construction evaluation with BOS/CHOCH detection and swing labeling
- 4 chart themes (Darkish Muted, Darkish, Mild, Customized)
- 10 EA sign buffers for algorithmic buying and selling integration
Getting Assist
You probably have questions or want assist:
I am dedicated to serving to you get probably the most out of this indicator.
Able to Begin?
Engulfing Buying and selling System is designed to save lots of you time and provide help to discover high-probability Engulfing patterns mechanically. Connect the indicator to your chart and begin with the default settings — you possibly can fine-tune the whole lot later as you get snug with the way it works.
Comfortable buying and selling!
Ich Khiem Nguyen
Engulfing Buying and selling System v1.00 — Created February 2026